DAX Reaches New Record High
On May 28, 2025, the German stock index (DAX) reached a record high of 24,326 points. However, throughout the day, investors increasingly realized profits, causing the index to fall by 0.8 percent to approximately 24,038 points. Currently, the DAX’s year-to-date gain stands at around 22 percent, which prompts many investors to take profits.
Impact of Nvidia and Other Uncertainties
The upcoming release of Nvidia’s quarterly results contributes to the cautious market sentiment. Nvidia, as a leading provider of AI processors, has the potential to impact the markets either positively or negatively. Additionally, speculation regarding the potential resignation of ECB President Christine Lagarde and uncertainties surrounding U.S. tariffs are weighing on investor sentiment.
Other Factors of Market Uncertainty
- ECB Speculations: Rumors about Lagarde’s resignation lead to uncertainty regarding the planned interest rate cuts by the European Central Bank.
- U.S. Tariff Policy: The extension of the deadline in the trade dispute with the U.S. creates uncertainty.
- Inflation Data: Despite positive signals, risks remain due to inflation concerns.
Overall, the behavior of investors shows a typical reaction to sharp price increases: profits are secured, especially when significant economic or political decisions are impending.